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ENLegal source: Convenios para Evitar la Doble Imposición suscritos por Chile; rango de ley conforme Art. 5° Constitución Política
Chile maintains double taxation treaties in force with more than thirty countries, including Spain, the United States, the United Kingdom, and Mexico. With a treaty in force, an investor can access a reduced Additional Tax rate and use 100% of the IDPC paid as a credit, by proving tax residency in the counterpart country.
Chile maintains a broad network of double taxation treaties, in force with more than thirty countries, including Spain, the United States, the United Kingdom, France, Germany, Canada, Mexico, Brazil, Argentina, China, Japan, and South Korea, among others.
What do double tax treaties resolve?
Without a treaty in force, a payment abroad — dividends, interest, royalties, services — can be subject to the general 35% Additional Tax rate. With a treaty in force, the investor may access a reduced rate and, in the case of dividends, use 100% of the IDPC paid by the company as a credit against the Additional Tax.
How does the treaty benefit apply in practice?
The treaty benefit is not automatic simply because the treaty exists — it typically requires proving tax residency in the counterpart country through a residency certificate, and meeting the specific formal requirements of the applicable treaty.
How do I check if a treaty applies to my country?
Not every country Chile has commercial ties with has a tax treaty currently in force — some are signed but not yet in effect. Chile’s tax authority (SII) publishes and maintains the official list of treaties in force at sii.cl; that registry determines, country by country, whether your treaty applies before planning the structure.
What’s the costliest mistake with treaties?
Assuming a treaty applies automatically without having confirmed its status and without having processed the corresponding residency certificate — this is usually discovered only at the moment of repatriating funds, when it’s too late to plan.
Frequently Asked Questions
More than thirty, including Spain, the United States, the United Kingdom, and Mexico.
No, it typically requires proving tax residency via a certificate.
In the official list published and updated by the tax authority.
How Izquierdo Deramond Consultores Can Help
At IDC we handle the accounting and monthly tax compliance of foreign-owned companies in Chile, including assessing which double tax treaties apply to your case. If you need support on this front, let’s talk or reach us on WhatsApp.
Legal notice: This article is provided for general informational purposes only. It does not constitute legal, tax, accounting, or other professional advice, and should not be relied upon as a substitute for professional advice tailored to your specific situation. Cited rules may change; always verify the current version. To discuss your case, please contact Izquierdo Deramond Consultores.